File photo shows an exterior view of the office building of the Beijing Stock Exchange, in Beijing, capital of China. (Xinhua/Li Xin)
BEIJING, Feb. 22 (Xinhua) -- Several companies listed on the Beijing Stock Exchange (BSE) have recently ramped up their investment activities with the goal of bolstering profitability and competitiveness, while also focusing on the continuous improvement of their market layout. The latest data from the official website of the BSE indicates that 15 companies have released statements detailing their investment plans since the start of 2024.
-- Increasing investments to promote production
At the beginning of this year, several BSE-listed companies have issued announcements regarding investments, aiming to fortify their development foundation through enhanced production efficiency and raw material supply capabilities.
Inner Mongolia Chevalese Dairy Group Co., Ltd. (832786) announced on January 22 to invest 10 million yuan to establish a wholly-owned subsidiary in Ulanqab City, north China's Inner Mongolia Autonomous Region. This new subsidiary will focus on agricultural planting activities. Additionally, on January 15, the company disclosed its plan to increase capital investment in its holding subsidiary in Ordos City, by 50 million yuan.
Regarding the purpose of the recent investments, the company explained that the decision to establish an agricultural subsidiary is based on the company's future development strategy, helping to ensure its raw material security and enhance its overall competitiveness. As for the capital increase in Ordos, it is conducive to increasing product sales revenue, and meeting the development needs of the company.
-- Accelerating "going global" of products
Expanding overseas markets and accelerating the "going global" of products is the main focus of some companies listed on the BSE.
On January 25, Gaishi Food Co., Ltd. (836826) declared its plan to establish a wholly-owned subsidiary in Singapore. The subsidiary will mainly engage in trading business, with a registered capital of 3 million Singapore dollars.
Gaishi Food, listed on the BSE in November 2021, is a high-tech enterprise that provides prepared appetizer like seaweed food series, nutritious mushroom series and seafood salad series for domestic and overseas markets. Its products have been sold to more than 60 countries and regions including Japan, the United States, Europe, and Southeast Asia.
In explaining the purpose of this outward investment, Gaishi Food clarified that the aim is to leverage the geographical advantages of Singapore, build a bridgehead for expanding international markets and better meet the needs of overseas customers. By doing so, Gaishi Food expects to improve the quality and efficiency of its services, enhance its international competitiveness, expand its share in overseas markets, and refine its business layout. This, in turn, will ultimately further enhance the company's comprehensive competitiveness and overall profitability.
QI Automotive (837242) shares a similar objective of continuously expanding its presence in overseas markets. It is committed to the development, design, and sales of endurable parts for the global automotive aftermarket. On January 26, the company announced that it had signed an investment cooperation agreement with an auto parts company based in east China's Qingdao to establish a joint company in Thailand. This venture will involve a total investment of 216 million Thai bahts. QI Automotive will hold 90 percent of the shares in the newly established company.
-- Expanding into new fields
In order to meet their own strategic development needs, some BSE-listed companies have expanded their operations in both upstream and downstream of the industrial chain. They venture into segmented fields by establishing subsidiaries.
On January 22, Haitai Solar (835985), a high-tech enterprises focused on green energy, announced its plan to establish a wholly-owned subsidiary in Shenzhen, with a registered capital of 15 million yuan. The subsidiary will primarily focus on battery swapping services for electric two-wheelers, electric three-wheelers, and light electric vehicles, as well as establishing independent energy stations.
Haitai Solar stated that the battery swapping service market mainly targets delivery riders. In recent years, the rapid growth of the domestic instant delivery market has led to a rise in the number of delivery riders. This surge, coupled with the ongoing improvement of battery-swapping facilities, has resulted in an increased penetration rate of battery swapping services. Consequently, the battery-swapping service market for electric two-wheelers is anticipated to expand significantly.
"In the future, the battery-swapping business will be integrated with the company's photovoltaic and energy storage industries to form a comprehensive independent energy station system, combining photovoltaic, energy storage, and battery swapping. This will expand the market space for power generation by tapping into the electricity consumption market." Haitai Solar stated that the company has already established a mature business team consisting of core personnel with expertise in various sectors, including software development, solution services, and business expansion.
(Edited by Bao Nuomin with Xinhua Silk Road, baonuomin@xinhua.org)
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